02/23/2024
What is net metering?
Try to think of net metering simply as a type of billing tool. Homes that run on solar are producing energy all the time. That said, daylight hours produce the most amount of energy because the sunlight is hitting your roof panels. Conversely, during the night there is no sunlight and therefore little to no energy being generated.
With net metering, homeowners are able to take the excess energy their home created but wasn’t used and offload it to their area’s local electric company. Every time you offload excess energy, you are paid in credits that you can use at a later date. In most cases, you will use these credits to power your home on cloudy days or during the night.
In short, net metering gives homeowners the ability to sell excess energy and recoup that energy at a later date. For this reason, net metering is sometimes referred to as ‘solar buyback,’ or ‘net billing’ and net energy metering (NEM).
What are the benefits of net metering?
There are several benefits to net metering. We’ve rounded up a few of them below:
It saves you money
We’re all looking to save money where we can, and there’s no shame in that. Metering typically results in lower utility bills month over month all of which work toward reimbursing yourself for your solar investment. Every time you earn credits for the excess energy your system generates, you’re able to use those credits during low-production times (like evenings) when your system naturally generates less energy.
It reduces your carbon footprint Switching to clean energy sources immediately reduces your carbon footprint, and every little bit counts. With net metering, you’re using clean and renewable energy and reducing greenhouse gas emissions all while doing your part to create a sustainable future for generations to come. It also ensures that no energy goes to waste.
It helps you achieve energy independence
For many of us, gaining energy independence is the ultimate goal. While solar installation requires a significant investment upfront, it generally pays for itself in just a few years. Being energy independent means that you have more control over the amount of energy you are producing and consuming. You also won’t need to rely so much on traditional utility companies and unexpected electricity pricing increases.